OTTAWA – A month after the government announced plans to overhaul Canada's foreign investment review process, it is also making rule changes that could make it easier for Canadian companies to be taken over by foreign corporations.
The government said Friday that in order to ensure that the review process focuses on “the most significant transactions”, the new regulations will gradually raise the review threshold from $330 million in asset value to $1 billion in enterprise value over four years. But that means that only the largest foreign acquisitions will be subject to government scrutiny.
Industry Minister Christian Paradis described foreign investment as “vital to the Canadian economy” as it provides access to new capital which in turn permits expansion, innovation and new jobs for Canadians.
"Our foreign investment review process is sound and encourages investment, economic growth and prosperity in Canada," he said in a statement. "With these targeted changes, we will ensure that it continues to do so for years to come."
The government also pledged to implement a formal mediation procedure to provide a voluntary means of resolving disputes when the Industry Minister believes an investor has failed to comply with an undertaking.
